2011 Trade Current Account Balance in Billions and Economic Freedom Overall Score (ranked by Trade Surplus)
1. Germany - $ 204.300 - 71.0
2. China - $ 201.700 - 51.2
3. Saudi Arabia - $ 158.500 - 62.5
4. Japan - $ 119.100 - 71.6
5. Russia - $ 100.300 - 50.5
2011 Trade Currenct Account Balance in Billions and Economic Freedom Overall Score (ranked by Economic Freedom Score)
1. Hong Kong - $ 12.910 - 89.9
2. Singapore - $ 56.980 - 87.5
3. Australia - $ -30.700 - 83.1
4. New Zealand - $ -5.097 - 82.1
5. Switzerland - $ 74.060 - 81.1
2011 Trade Deficits in Billions and Economic Freedom Overall Score (ranked by Trade Deficit)
1. United States - $ -473.900 - 76.3
2. Turkey - $ -77.890 - 62.5
3. France - $ -71.878 - 63.2
4. United Kingdom - $ -66.600 - 74.1
5. India - $ -62.960 - 54.6
After comparing the numbers I've found that there is no real correlation.
I've heard Schiff talk about that the reason why countries are in deficits are because their workers are less productive and if America was more productive we would not be running trade deficits. Well, if that is the case then why are countries that have low economic freedom scores running trade surpluses?
There's nothing wrong with trade deficits...
Especially when we consider that we are trading away fiat money for real goods.
Also don't forget the other Twin Tower of Wealth Destruction: Government Intervention. The people in China are not the only ones getting screwed by their governments. The governments of very free peoples are also promoting US, UK, French and Indian consumers over their own.
And the percapita statistics are much worse. The Government of Switzerland holds $45000 per Swiss subject. Luxembouirg is worse holding $231000 per subject that they have. This amounts to a massive transfer of current goods for Government promises.
The funny part is that under market determined money, this mess is impossible.
That is strange, Wheylous. I have heard Schiff talk badly about it. Do you have any articles about Trade deficits not being a problem. I understand in the short run, but to have consecutive trade deficits, that is a problem.
Start with http://mises.org/daily/1955/